A recent study revealed that New Zealand’s gambling market revenue is expected to reach $3.11bn in 2025, an increase of 5.5%. The report includes statistics from: online casinos, sportsbook as well as land-based betting.
The report, which was independently conducted by Statista, also predicts that revenue is expected to have an annual growth rate of 3.08% over the next five years. Which, if true, would result in a projected market of $3.62bn by 2030.
This would make New Zealand one of the fastest growing gambling markets in the world, and it is partly down to the average revenue per customer spending $681 per year on gambling products – thus showing the spending power of New Zealanders compared to other markets.
Furthermore, the number of players that are estimated to gamble in New Zealand in 2030 is expected to be 5.1 million, with user penetration expected to be 87% in 2025.
These stats come as a new Online Gambling Bill is expected to allow 15 new licences available for operators under new legislation that aims to better regulate the booming market.
This new law will also be tougher on the unregulated market, with unlicensed operators that offer their services in the country potentially facing fines of up to $3m.
Companies who wish to be granted one of those licences must propose a detailed business plan, with the likes of SkyCity, 888 and bet365 just some of the betting companies showing an interest.
Speaking about the Bill, Minister of Internal Affairs, Brooke van Velden said: “The Online Casino Gambling Bill will introduce a regulatory system for online gambling in New Zealand, which will prioritise harm minimisation, consumer protection and tax collection.
“The bill will proceed to the select committee later this year and New Zealanders will have the ability to have their say through the select committee process,” added van Velden.
Despite the continued and steady growth of gambling revenue in New Zealand, and the impending available licences, the market is still a lot smaller than the world’s biggest market – USA. Their revenue is expected to be $121.29bn this year, according to the same report.
However, the continued growth and demand for sports betting and casino games in the country is clearly evident. In fact, the casino games market has a projected value of $1.83bn this year, which will make it far greater than its sports betting equivalent.
With greater detail on players’ behaviours in the country, and governmental focus on stronger regulation (such as the new ring-faced approach for new gambling framework), it’s easy to see why companies want to operate in New Zealand. As such, strong growth projections like these are easy to see why.
Other countries might be struggling to find growth in gambling revenue but New Zealand is certainly not one of those – the industry is growing in the land of the long white cloud.
